Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CEVA | |
Entity Registrant Name | CEVA INC | |
Entity Central Index Key | 1,173,489 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,902,376 | |
Entity Emerging Growth Company | false | |
Entity Small Company | false |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 9,212 | $ 21,739 |
Short term bank deposits | 31,561 | 34,432 |
Marketable securities | 78,783 | 82,664 |
Trade receivables | 7,577 | 14,480 |
Accrued revenues | 16,456 | 2,014 |
Prepaid expenses and other current assets | 5,904 | 3,747 |
Total current assets | 149,493 | 159,076 |
Long term bank deposits | 47,450 | 44,518 |
Severance pay fund | 9,242 | 8,910 |
Deferred tax assets | 4,727 | 3,643 |
Property and equipment, net | 7,979 | 6,926 |
Goodwill | 46,612 | 46,612 |
Intangible assets, net | 3,004 | 1,742 |
Investments in other company | 1,806 | 1,806 |
Other long-term assets | 4,938 | 3,579 |
Total long-term assets | 125,758 | 117,736 |
Total assets | 275,251 | 276,812 |
Current liabilities: | ||
Trade payables | 1,000 | 392 |
Deferred revenues | 3,614 | 4,399 |
Accrued expenses and other payables | 3,920 | 3,927 |
Accrued payroll and related benefits | 12,529 | 14,077 |
Total current liabilities | 21,063 | 22,795 |
Long term liabilities: | ||
Accrued severance pay | 9,800 | 9,347 |
Total long-term liabilities | 9,800 | 9,347 |
Stockholders' equity: | ||
Preferred Stock: $0.001 par value: 5,000,000 shares authorized; none issued and outstanding | ||
Common Stock: $0.001 par value: 60,000,000 shares authorized; 23,595,160 shares issued at September 30, 2018 (unaudited) and December 31, 2017. 21,902,376 and 22,064,007 shares outstanding at September 30, 2018 (unaudited) and December 31, 2017, respectively | 22 | 22 |
Additional paid in-capital | 221,248 | 217,417 |
Treasury stock at cost (1,692,784 and 1,531,153 shares of common stock at September 30, 2018 (unaudited) and December 31, 2017, respectively) | (36,168) | (26,056) |
Accumulated other comprehensive loss | (1,284) | (586) |
Retained earnings | 60,570 | 53,873 |
Total stockholders' equity | 244,388 | 244,670 |
Total liabilities and stockholders' equity | $ 275,251 | $ 276,812 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares issued | 23,595,160 | 23,595,160 |
Common Stock, shares outstanding | 21,902,376 | 22,064,007 |
Treasury stock, shares | 1,692,784 | 1,531,153 |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 21,413 | $ 24,044 | $ 56,476 | $ 65,906 |
Cost of revenues | 2,006 | 1,726 | 5,966 | 5,030 |
Gross profit | 19,407 | 22,318 | 50,510 | 60,876 |
Operating expenses: | ||||
Research and development, net | 11,897 | 10,031 | 35,756 | 30,413 |
Sales and marketing | 2,727 | 3,057 | 9,302 | 9,422 |
General and administrative | 2,406 | 2,711 | 8,193 | 7,388 |
Amortization of intangible assets | 225 | 309 | 676 | 927 |
Total operating expenses | 17,255 | 16,108 | 53,927 | 48,150 |
Operating income (loss) | 2,152 | 6,210 | (3,417) | 12,726 |
Financial income, net | 831 | 821 | 2,535 | 2,147 |
Income (loss) before taxes on income | 2,983 | 7,031 | (882) | 14,873 |
Income taxes expense | 440 | 1,181 | 847 | 1,008 |
Net income | $ 2,543 | $ 5,850 | $ (1,729) | $ 13,865 |
Basic net income (loss) per share | $ 0.12 | $ 0.27 | $ (0.08) | $ 0.64 |
Diluted net income (loss) per share | $ 0.11 | $ 0.26 | $ (0.08) | $ 0.62 |
Weighted-average shares used to compute net income (loss) per share (in thousands): | ||||
Basic | 21,997 | 21,946 | 22,091 | 21,687 |
Diluted | 22,428 | 22,683 | 22,091 | 22,480 |
Licensing and Related Revenue | ||||
Revenues: | ||||
Revenues | $ 9,786 | $ 14,021 | $ 29,907 | $ 33,893 |
Royalties | ||||
Revenues: | ||||
Revenues | $ 11,627 | $ 10,023 | $ 26,569 | $ 32,013 |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss): | $ 2,543 | $ 5,850 | $ (1,729) | $ 13,865 |
Available-for-sale securities: | ||||
Changes in unrealized gains (losses) | 16 | 96 | (863) | 322 |
Reclassification adjustments for (gains) losses included in net income | 32 | (7) | 30 | 33 |
Net change | 48 | 89 | (833) | 355 |
Cash flow hedges: | ||||
Changes in unrealized gains (losses) | 21 | (2) | (259) | 180 |
Reclassification adjustments for (gains) losses included in net income | 63 | 2 | 259 | (186) |
Net change | 84 | (6) | ||
Other comprehensive income (loss) before tax | 132 | 89 | (833) | 349 |
Income tax expense (benefit) related to components of other comprehensive income (loss) | (1) | 12 | (135) | 53 |
Other comprehensive income (loss), net of taxes | 133 | 77 | (698) | 296 |
Comprehensive income (loss) | $ 2,676 | $ 5,927 | $ (2,427) | $ 14,161 |
INTERIM CONDENSED CONSOLIDATE_5
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,729) | $ 13,865 |
Adjustments required to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 1,914 | 1,447 |
Amortization of intangible assets | 938 | 927 |
Equity-based compensation | 8,083 | 6,346 |
Realized loss, net on sale of available-for-sale marketable securities | 30 | 33 |
Amortization of premiums on available-for-sale marketable securities | 609 | 907 |
Unrealized foreign exchange (gain) loss | 141 | (24) |
Changes in operating assets and liabilities: | ||
Trade receivables and accrued revenues | 1,658 | 2,159 |
Prepaid expenses and other assets | (3,815) | (2,572) |
Accrued interest on bank deposits | (643) | (3) |
Deferred tax, net | (949) | (741) |
Trade payables | 557 | (105) |
Deferred revenues | (785) | (1,984) |
Accrued expenses and other payables | (802) | 416 |
Accrued payroll and related benefits | (1,329) | (1,532) |
Income taxes payable | 55 | (1,501) |
Accrued severance pay, net | 149 | 60 |
Net cash provided by operating activities | 4,082 | 17,698 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,913) | (3,340) |
Purchase of intangible assets | (1,960) | |
Investment in bank deposits | (21,596) | (30,757) |
Proceeds from bank deposits | 22,065 | 27,050 |
Investment in available-for-sale marketable securities | (15,516) | (36,468) |
Proceeds from maturity of available-for-sale marketable securities | 10,122 | 8,086 |
Proceeds from sale of available-for-sale marketable securities | 7,803 | 15,206 |
Net cash used in investing activities | (1,995) | (20,223) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (16,742) | |
Proceeds from exercise of stock-based awards | 2,249 | 6,898 |
Net cash provided by (used in) financing activities | (14,493) | 6,898 |
Effect of exchange rate changes on cash and cash equivalents | (121) | 157 |
Increase (decrease) in cash and cash equivalents | (12,527) | 4,530 |
Cash and cash equivalents at the beginning of the period | 21,739 | 18,401 |
Cash and cash equivalents at the end of the period | 9,212 | 22,931 |
Supplemental information of cash-flow activities: | ||
Income and withholding taxes, net of refunds | 3,716 | $ 3,934 |
Non-cash transactions: | ||
Cumulative effect of adoption of new accounting standard | 8,555 | |
Property and equipment purchases incurred but unpaid at period end | 54 | |
Intangible assets purchases incurred but unpaid at period end | $ 750 |
BUSINESS
BUSINESS | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | NOTE 1: BUSINESS The financial information in this quarterly report includes the results of CEVA, Inc. and its subsidiaries (the “Company” or “CEVA”). CEVA licenses a family of signal processing IPs, including comprehensive platforms for 5G baseband processing in handsets and base station RAN, highly integrated cellular IoT solutions (NB-IoT Cat-M1), Wi-Fi (Wi-Fi Wi-Fi Wi-Fi CEVA’s technologies are licensed to leading semiconductor and original equipment manufacturer (OEM) companies. These companies design, manufacture, market and sell application-specific integrated circuits (“ASICs”) and application-specific standard products (“ASSPs”) based on CEVA’s technology to wireless, consumer electronics and automotive companies for incorporation into a wide variety of end products. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim condensed consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10K for the year ended December 31, 2017. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2017, contained in the Company’s Annual Report on Form 10K filed with the Securities and Exchange Commission on March 1, 2018, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for changes associated with recent accounting standards for revenue recognition and financial instruments for the three and nine months ended September 30, 2018, as detailed below. Changes in accounting policies as a result of adopting Topic 606 and nature of goods Effective as of January 1, 2018, the Company has followed the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the customers in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company determines revenue recognition through the following steps: • identification of the contract with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. The Company enters into contracts that can include various combinations of products and services, as detailed below, which are generally capable of being distinct and accounted for as separate performance obligations. The Company generates its revenues from (1) licensing intellectual properties, which in certain circumstances are modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. The Company accounts for its IP license revenues and related services, which provide the Company’s customers with rights to use the Company’s IP, in accordance with ASC 606. A license may be perpetual or time limited in its application. In accordance with ASC 606, the Company will continue to recognize revenue from IP license at the time of delivery when the customer accepts control of the IP, as the IP is functional without professional services, updates and technical support. The Company has concluded that its IP license is distinct as the customer can benefit from the software on its own. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately, if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of IP license are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. When contracts involve a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provide the customer with a significant benefit of financing, unless the financing period is under one year and only after the products or services were provided, which is a practical expediency permitted under ASC 606. Revenues from contracts that involve significant customization of the Company’s IP to customer-specific specifications are performance obligations the Company generally accounts for as performance obligations satisfied over time. The underlying deliverable is owned and controlled by the customer, and does not create an asset with an alternative use to the Company. The Company recognizes revenue on such contracts using cost based input methods, which recognize revenue and gross profit as work is performed based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. The Company receives the actual sales data from its customers after the quarter ends and accounts for it as accrued revenue. When the Company does not receive actual sales data from the customer prior to the finalization of its financial statements, royalty revenues are recognized based on the Company’s estimation of the customer’s sales during the quarter. In addition to license fees, contracts with customers generally contain an agreement to provide for training and post contract support, which consists of telephone or e-mail Revenues from the sale of development systems are recognized when control of the promised goods or services are transferred to the customers. Deferred revenues, which represent a contract liability, include unearned amounts received under license agreements, unearned technical support and amounts paid by customers not yet recognized as revenues. The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and, if they are expected to be recovered, amortized consistently with the pattern of transfer of the good or service to which the asset relates. If the expected amortization period is one year or less, the commission fee is expensed when incurred. Changes in accounting policies as a result of adopting ASU No. 2016-01, Beginning on January 1, 2018, the Company has followed the provisions of Accounting Standards Update (“ASU”) No. 2016-01, Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. These amounts are associated with trade receivables and accrued revenues. Such reclassifications have no effect on stockholders’ equity or net income as previously reported. Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 3: REVENUE RECOGNITION In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to revenue recognition, which outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. ASC 606 requires a company to recognize revenue as control of goods or services transfers to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. It defines a five-step approach for recognizing revenue, which may require a company to use more judgment and make more estimates than under the prior guidance. The Company adopted ASC 606 on January 1, 2018 for all open contracts at the date of initial application, and applied the standard using modified retrospective approach, with the cumulative effect of applying ASC 606 recognized as an adjustment to the opening retained earnings balance. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net increase to opening retained earnings of $8,555 as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact to revenues for the three and nine months ended September 30, 2018 was an increase of $3,945 and $2,872, respectively, as a result of adopting ASC 606. With respect to the Company’s licensing business, under ASC 606, certain deliverables may now be considered as distinct performance obligations separate from other performance obligations, and will be measured using the relative standalone selling price basis, and recognized as revenue accordingly. Nevertheless, the adoption of ASC 606 for licensing and related revenues did not have a significant impact on the Company’s financial statements. With respect to the Company’s royalty business, ASC 606 did not have a significant impact. Under the accounting standards in effect during prior periods, the Company recognized sales-based royalties as revenues during the quarter, which such royalties were reported by licensees, which reflected the licensees’ prior quarter sales and when all other revenue recognition criteria were met. Under ASC 606, the Company is required to estimate and recognize sales-based royalties during the period which the associated sales occur. Accordingly, the Company has an increase in accrued revenues of $10,787 in the statement of financial position. Under ASC 606, an entity recognizes revenue when or as it satisfies a performance obligation by transferring IP license or services to the customer, either at a point in time or over time. The Company recognizes most of its revenues at a point in time upon delivery of its IPs. The Company recognizes revenue over time on significant license customization contracts that are covered by contract accounting standards using cost inputs to measure progress toward completion of its performance obligations, which is similar to the method prior to the adoption of ASC 606. The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of royalties or unexercised contract renewals: Remainder of 2018 2019 2020 2021 License and related revenues $ 2,256 $ 6,730 $ 3,000 $ 1,500 In connection with the adoption of ASC 606, the Company is required to capitalize incremental costs that are related to sales during the period, consisting primarily of sales commissions earned when contracts are signed. As of January 1, 2018, the date the Company adopted ASC 606, the Company capitalized $239 in contract acquisition costs related to contracts that were not completed. For contracts that have a duration of less than one year, the Company follows ASC 606’s practical expediency, and expenses these costs when incurred; for contracts with life exceeding one year, the Company records these costs in proportion to each completed contract performance obligation. For the three and nine months ended September 30, 2018, the amount of amortization was $0 and $120, respectively, and there was no impairment loss in relation to costs capitalized. Disaggregation of revenue: The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition (in thousands): Nine months ended September 30, 2018 Three months ended September 30, 2018 Licensing and Royalties Total Licensing and Royalties Total Primary geographical markets United States $ 4,667 $ 1,420 $ 6,087 $ 1,483 $ 776 $ 2,259 Europe and Middle East 3,286 8,019 11,305 534 5,605 6,139 Asia Pacific 21,954 17,130 39,084 7,769 5,246 13,015 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 Major product/service lines DSP products (DSP cores and platforms) $ 18,077 $ 24,241 $ 42,318 $ 4,652 $ 10,600 $ 15,252 Connectivity products (Bluetooth, Wi-Fi 11,830 2,328 14,158 5,134 1,027 6,161 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 Timing of revenue recognition Products transferred at a point in time $ 22,163 $ 26,569 $ 48,732 $ 6,878 $ 11,627 $ 18,505 Products and services transferred over time 7,744 — 7,744 2,908 — 2,908 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 Contract balances: The following table provides information about trade receivables, contract assets and contract liabilities from contracts with customers (in thousands): September 30, Trade receivables $ 7,577 Accrued revenues (short-term contract assets) 5,279 Accrued revenues (royalties) 11,177 Deferred revenues (short-term contract liabilities) 3,614 The Company receives payments from customers based upon contractual payment schedules; trade receivable are recorded when the right to consideration becomes unconditional, and an invoice is issued to the customer. Contract assets include amounts related to the Company’s contractual right to consideration for completed performance objectives not yet invoiced. Accrued revenues associated with royalties are recorded as the Company recognizes revenues from royalties earned during the quarter, not yet invoiced, either by actual sales data received from the customers, or, when applicable, by estimation. Contract liabilities (deferred revenue) include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. During the three and nine months ended September 30, 2018, the Company recognized $253 and $3,676, respectively, that was included in deferred revenues (short-term contract liability) balance at January 1, 2018. In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s condensed consolidated statements of income and balance sheets was as follows: Nine months ended September 30, 2018 Three months ended September 30, 2018 As reported Balance Effect of change higher/(lower) As reported Balance Effect of change higher/(lower) Revenues: Licensing and related revenue $ 29,907 $ 28,730 $ 1,177 $ 9,786 $ 10,131 $ (345 ) Royalties 26,569 24,874 1,695 11,627 7,337 4,290 Total revenues 56,476 53,604 2,872 21,413 17,468 3,945 Cost of revenues 5,966 5,966 — 2,006 2,006 — Gross profit 50,510 47,638 2,872 19,407 15,462 3,945 Operating expenses: Sales and marketing 9,302 9,186 116 2,727 2,729 (2 ) Other operating expenses 44,625 44,625 — 14,528 14,528 — Total operating expenses 53,927 53,811 116 17,255 17,257 (2 ) Operating income (loss) (3,417 ) (6,173 ) 2,756 2,152 (1,795 ) 3,947 Financial income, net 2,535 2,535 — 831 831 — Income (loss) before taxes on income (882 ) (3,638 ) 2,756 2,983 (964 ) 3,947 Income taxes expenses (benefit) 847 657 190 440 (112 ) 552 Net income (loss) $ (1,729 ) $ (4,295 ) $ 2,566 $ 2,543 $ (852 ) $ 3,395 Basic net income (loss) per share $ (0.08 ) $ (0.19 ) $ 0.12 $ 0.12 $ (0.04 ) $ 0.15 Diluted net income (loss) per share $ (0.08 ) $ (0.19 ) $ 0.12 $ 0.11 $ (0.04 ) $ 0.15 September 30, 2018 (unaudited) As reported Balance Effect of change higher/(lower) Assets: Trade receivables $ 7,577 $ 6,718 $ 859 Accrued revenues $ 16,456 $ 5,269 $ 11,187 Prepaid expenses and other current assets $ 5,904 $ 6,856 $ (952 ) Liabilities: Deferred revenues $ 3,614 $ 3,641 $ (27 ) Stockholders’ Equity: Retained earnings $ 60,570 $ 49,449 $ 11,121 Practical Expediency and Exemptions The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within sales and marketing expenses on the Company’s interim condensed consolidated statements of income. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | NOTE 4: MARKETABLE SECURITIES The following is a summary of available-for-sale September 30, 2018 (Unaudited) Amortized Gross Gross Fair Available-for-sale Corporate bonds $ 8,538 $ — $ (49 ) $ 8,489 8,538 — (49 ) 8,489 Available-for-sale Certificate of deposits 747 — — 747 Government bonds 501 — (11 ) 490 Corporate bonds 70,508 1 (1,452 ) 69,057 71,756 1 (1,463 ) 70,294 Total $ 80,294 $ 1 $ (1,512 ) $ 78,783 December 31, 2017 (Audited) Amortized Gross Gross Fair Available-for-sale Corporate bonds $ 11,803 $ 3 $ (12 ) $ 11,794 11,803 3 (12 ) 11,794 Available-for-sale Certificate of deposits 747 — — 747 Government bonds 501 — (6 ) 495 Corporate bonds 70,291 14 (677 ) 69,628 71,539 14 (683 ) 70,870 Total $ 83,342 $ 17 $ (695 ) $ 82,664 The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2018 and December 31, 2017, and the length of time that those investments have been in a continuous loss position: Less than 12 months 12 months or greater Fair value Gross Fair value Gross As of September 30, 2018 (unaudited) $ 40,918 $ (615 ) $ 36,817 $ (897 ) As of December 31, 2017 $ 49,921 $ (411 ) $ 22,960 $ (284 ) As of September 30, 2018 and December 31, 2017, management believes the impairments are not other than temporary and therefore the impairment losses were recorded in accumulated other comprehensive income (loss). The following table presents gross realized gains and losses from sale of available-for-sale Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Gross realized gains from sale of available-for-sale $ 4 $ 14 $ — $ 8 Gross realized losses from sale of available-for-sale $ (34 ) $ (47 ) $ (32 ) $ (1 ) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 5: FAIR VALUE MEASUREMENT FASB ASC No. 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level I Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities; Level II Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level III Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The Company measures its marketable securities at fair value. Marketable securities are classified within Level II as the valuation inputs are based on quoted prices and market observable data of similar instruments. The table below sets forth the Company’s assets measured at fair value by level within the fair value hierarchy. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Description September 30, 2018 Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 747 $ — $ 747 $ — Government bonds 490 — 490 — Corporate bonds 77,546 — 77,546 — Description December 31, 2017 Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 747 $ — $ 747 $ — Government bonds 495 — 495 — Corporate bonds 81,422 — 81,422 — |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6: INTANGIBLE ASSETS, NET Nine months ended September 30, 2018 Year ended December 31, 2017 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets –amortizable: Customer relationships 4.5 $ 272 $ 257 $ 15 $ 272 $ 211 $ 61 Customer backlog 1.5 93 93 — 93 93 — Core technologies 5.1 5,796 4,745 1,051 5,796 4,115 1,681 NB-IoT 7.0 2,200 262 1,938 — — — Total intangible assets $ 8,361 $ 5,357 $ 3,004 $ 6,161 $ 4,419 $ 1,742 (*) During the first quarter of 2018, the Company entered into an agreement to acquire certain NB-IoT NB-IoT Future estimated annual amortization charges are as follows: 2018 304 2019 1,155 2020 314 2021 314 2022 314 2023 314 2024 289 $ 3,004 |
GEOGRAPHIC INFORMATION AND MAJO
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA | NOTE 7: GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA a. Summary information about geographic areas: The Company manages its business on the basis of one reportable segment: the licensing of intellectual property to semiconductor companies and electronic equipment manufacturers (see Note 1 for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Revenues based on customer location: United States $ 6,087 $ 6,162 $ 2,259 $ 1,237 Europe and Middle East (1) 11,305 7,451 6,139 1,267 Asia Pacific (2) (3) (4) 39,084 52,293 13,015 21,540 $ 56,476 $ 65,906 $ 21,413 $ 24,044 (1) Germany $ 8,582 * ) $ 5,600 * ) (2) China $ 23,127 $ 31,008 $ 10,192 $ 15,188 (3) S. Korea $ 7,152 $ 13,852 * ) $ 5,076 (4) Japan $ 6,116 * ) * ) * ) *) Less than 10% b. Major customer data as a percentage of total revenues: The following table sets forth the customers that represented 10% or more of the Company’s total revenues in each of the periods set forth below. Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Customer A 16 % 22 % 16 % 20 % Customer B 12 % 17 % * ) 18 % Customer C 16 % * ) 26 % * ) Customer D * ) * ) * ) 12 % Customer E * ) * ) * ) 21 % *) Less than 10% |
NET INCOME (LOSS) PER SHARE OF
NET INCOME (LOSS) PER SHARE OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE OF COMMON STOCK | NOTE 8: NET INCOME (LOSS) PER SHARE OF COMMON STOCK Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.” Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Numerator: Net income (loss) $ (1,729 ) $ 13,865 $ 2,543 $ 5,850 Denominator (in thousands): Basic weighted-average common stock outstanding 22,091 21,687 21,997 21,946 Effect of stock -based awards — 793 431 737 Diluted weighted average common stock outstanding 22,091 22,480 22,428 22,683 Basic net income (loss) per share $ (0.08 ) $ 0.64 $ 0.12 $ 0.27 Diluted net income (loss) per share $ (0.08 $ 0.62 $ 0.11 $ 0.26 The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was 136,113 shares for the three months ended September 30, 2018. The total number of shares related to the outstanding equity-based awards excluded from the calculation of diluted net loss per share was 1,273,610 for the nine months ended September 30, 2018. The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was 0 and 39,856 shares for the three and nine months ended September 30, 2017, respectively. |
COMMON STOCK AND STOCK-BASED CO
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS | NOTE 9: COMMON STOCK AND STOCK-BASED COMPENSATION PLANS The Company grants stock options and stock appreciation rights (“SARs”) capped with a ceiling to employees and stock options to non-employee non-employee Number of Weighted Weighted Aggregate Outstanding as of December 31, 2017 729,017 $ 19.77 5.2 $ 19,229 Granted — — Exercised (19,474 ) 16.22 Forfeited or expired (2,128 ) 20.50 Outstanding as of September 30, 2018 (2) 707,415 $ 19.87 4.5 $ 6,447 Exercisable as of September 30, 2018 (3) 610,731 $ 18.96 4.2 $ 6,089 (1) The SAR units are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant. (2) Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 645,874 shares of the Company’s common stock issuable upon exercise. (3) Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 553,861 shares of the Company’s common stock issuable upon exercise. As of September 30, 2018, there was $224 of unrecognized compensation expense related to unvested stock options and SARs. This amount is expected to be recognized over a weighted-average period of 1.2 years. Starting in the second quarter of 2015, the Company granted to employees, including executive officers, and non-employee non-employee non-employee Number of Weighted Average Unvested as of December 31, 2017 560,616 $ 29.31 Granted 304,496 34.83 Vested (268,052 ) 27.73 Forfeited or expired (30,865 ) 35.46 Unvested as of September 30, 2018 566,195 $ 32.70 As of September 30, 2018, there was $13,278 of unrecognized compensation expense related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 1.5 years. The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of income: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Cost of revenue $ 480 $ 330 $ 155 $ 125 Research and development, net 3,874 2,834 1,246 991 Sales and marketing 1,246 1,040 369 381 General and administrative 2,483 2,142 697 722 Total equity-based compensation expense $ 8,083 $ 6,346 $ 2,467 $ 2,219 The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 35%-42 % 28%-46 % 38 % 28%-43 % Risk-free interest rate 0.7%-2.2 % 0.5%-1.1 % 2.2 % 0.6%-1.1 % Contractual term of up to 24 months 24 months 24 months 24 months |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 10: DERIVATIVES AND HEDGING ACTIVITIES The Company follows the requirements of FASB ASC No. 815,” Derivatives and Hedging” which requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Due to the Company’s global operations, it is exposed to foreign currency exchange rate fluctuations in the normal course of its business. The Company’s treasury policy allows it to offset the risks associated with the effects of certain foreign currency exposures through the purchase of foreign exchange forward or option contracts (“Hedging Contracts”). The policy, however, prohibits the Company from speculating on such Hedging Contracts for profit. To protect against the increase in value of forecasted foreign currency cash flow resulting from salaries paid in currencies other than the U.S. dollar during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of the anticipated payroll of its non-U.S. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gain or loss on a derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item is recognized in current earnings during the period of change. As of September 30, 2018 and December 31, 2017, the notional principal amount of the Hedging Contracts to sell U.S. dollars held by the Company was $4,250 and $0, respectively. The fair value of the Company’s outstanding derivative instruments is as follows: September 30, December 31, 2018 2017 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 11 $ — Total $ 11 $ — Derivative liabilities: Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 11 $ — Total $ 11 $ — The increase (decrease) in unrealized gains (losses) recognized in “accumulated other comprehensive loss” on derivatives, before tax effect, is as follows: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (128 ) $ 88 $ (2 ) $ 1 Foreign exchange forward contracts (131 ) 92 23 (3 ) $ (259 ) $ 180 $ 21 $ (2 ) The net (gains) losses reclassified from “accumulated other comprehensive loss” into income are as follows: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 117 $ (88 ) $ 20 $ (1 ) Foreign exchange forward contracts 142 (98 ) 43 3 $ 259 $ (186 ) $ 63 $ 2 The Company recorded in cost of revenues and operating expenses a net loss of $63 and $259 during the three and nine months ended September 30, 2018, respectively, and a net loss of $2 and a net gain of $186 for the comparable periods of 2017, related to its Hedging Contracts. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 11: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the changes in accumulated balances of other comprehensive income (loss), net of taxes: Nine months ended September 30, 2018 Three months ended September 30, 2018 Unrealized gains (losses) on available-for-sale Unrealized Total Unrealized gains (losses) on available-for-sale Unrealized Total Beginning balance $ (586 ) $ — $ (586 ) $ (1,342 ) $ (75 ) $ (1,417 ) Other comprehensive income (loss) before reclassifications (726 ) (232 ) (958 ) 28 18 46 Amounts reclassified from accumulated other comprehensive income (loss) 28 232 260 30 57 87 Net current period other comprehensive income (loss) (698 ) — (698 ) 58 75 133 Ending balance $ (1,284 ) $ — $ (1,284 ) $ (1,284 ) $ — $ (1,284 ) Nine months ended September 30, 2017 Three months ended September 30, 2017 Unrealized gains (losses) on available-for-sale Unrealized Total Unrealized gains (losses) on available-for-sale Unrealized Total Beginning balance $ (502 ) $ 5 $ (497 ) $ (278 ) $ — $ (278 ) Other comprehensive income (loss) before reclassifications 277 161 438 82 (3 ) 79 Amounts reclassified from accumulated other comprehensive income (loss) 24 (166 ) (142 ) (5 ) 3 (2 ) Net current period other comprehensive income (loss) 301 (5 ) 296 77 — 77 Ending balance $ (201 ) $ — $ (201 ) $ (201 ) $ — $ (201 ) The following table provides details about reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Other Amount Reclassified from Accumulated Other Affected Line Item in the Statements of Nine months ended Three months ended 2018 2017 2018 2017 Unrealized gains (losses) on cash flow hedges $ (5 ) $ 4 $ (1 ) $ — Cost of revenues (225 ) 160 (55 ) (2 ) Research and development (10 ) 10 (3 ) — Sales and marketing (19 ) 12 (4 ) — General and administrative (259 ) 186 (63 ) (2 ) Total, before income taxes (27 ) 20 (6 ) 1 Income tax expense (benefit) (232 ) 166 (57 ) (3 ) Total, net of income taxes Unrealized gains (losses) on available-for-sale (30 ) (33 ) (32 ) 7 Financial income (loss), net (2 ) (9 ) (2 ) 2 Income tax benefit (28 ) (24 ) (30 ) 5 Total, net of income taxes $ (260 ) $ 142 $ (87 ) $ 2 Total, net of income taxes |
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
SHARE REPURCHASE PROGRAM | NOTE 12: SHARE REPURCHASE PROGRAM In May 2018, the Company’s Board of Directors authorized the repurchase by the Company of an additional 700,000 shares of common stock pursuant to Rule 10b-18 During the third quarter of 2018, the Company repurchased 216,156 shares of common stock at an average purchase price of $29.18 per share for an aggregate purchase price of $6,308. During the first nine months ended September 30, 2018, the Company repurchased 527,212 shares of common stock at an average purchase price of $31.76 per share for an aggregate purchase price of $16,742. The Company did not repurchase any shares of its common stock during the third quarter and first nine months of 2017. As of September 30, 2018, 483,844 shares of common stock remained available for repurchase pursuant to the Company’s share repurchase program. The repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. When treasury shares are reissued, the Company accounts for the reissuance in accordance with FASB ASC No. 505-30, paid-in |
IMPACT OF RECENTLY ISSUED ACCOU
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED | NOTE 13: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED In January 2016, the FASB issued ASU 2016-13, available-for-sale 2016-13 available-for-sale In February 2016, the FASB issued ASU 2016-02, 2016-02 No. 2018-11, In August 2017, the FASB issued ASU 2017-12, 2017-12”), 2017-12 In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed 10-K Effective no later than January 1, 2019, the Company will adopt the accounting standards update that allows for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The update, which permits early adoption, is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods. The Company continues to evaluate the requirements and does not expect the adoption to have a material effect on its condensed consolidated statements of financial position, operations and cash flows and on the disclosures contained in the notes to condensed consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10K for the year ended December 31, 2017. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2017, contained in the Company’s Annual Report on Form 10K filed with the Securities and Exchange Commission on March 1, 2018, have been applied consistently in these unaudited interim condensed consolidated financial statements, except for changes associated with recent accounting standards for revenue recognition and financial instruments for the three and nine months ended September 30, 2018, as detailed below. |
Changes in accounting policies as a result of adopting Topic 606 and nature of goods | Changes in accounting policies as a result of adopting Topic 606 and nature of goods Effective as of January 1, 2018, the Company has followed the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the customers in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company determines revenue recognition through the following steps: • identification of the contract with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, the Company satisfies a performance obligation. The Company enters into contracts that can include various combinations of products and services, as detailed below, which are generally capable of being distinct and accounted for as separate performance obligations. The Company generates its revenues from (1) licensing intellectual properties, which in certain circumstances are modified for customer-specific requirements, (2) royalty revenues, and (3) other revenues, which include revenues from support, training and sale of development systems. The Company accounts for its IP license revenues and related services, which provide the Company’s customers with rights to use the Company’s IP, in accordance with ASC 606. A license may be perpetual or time limited in its application. In accordance with ASC 606, the Company will continue to recognize revenue from IP license at the time of delivery when the customer accepts control of the IP, as the IP is functional without professional services, updates and technical support. The Company has concluded that its IP license is distinct as the customer can benefit from the software on its own. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately, if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of IP license are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. When contracts involve a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provide the customer with a significant benefit of financing, unless the financing period is under one year and only after the products or services were provided, which is a practical expediency permitted under ASC 606. Revenues from contracts that involve significant customization of the Company’s IP to customer-specific specifications are performance obligations the Company generally accounts for as performance obligations satisfied over time. The underlying deliverable is owned and controlled by the customer, and does not create an asset with an alternative use to the Company. The Company recognizes revenue on such contracts using cost based input methods, which recognize revenue and gross profit as work is performed based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses are first determined, in the amount of the estimated loss on the entire contract. Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. The Company receives the actual sales data from its customers after the quarter ends and accounts for it as accrued revenue. When the Company does not receive actual sales data from the customer prior to the finalization of its financial statements, royalty revenues are recognized based on the Company’s estimation of the customer’s sales during the quarter. In addition to license fees, contracts with customers generally contain an agreement to provide for training and post contract support, which consists of telephone or e-mail Revenues from the sale of development systems are recognized when control of the promised goods or services are transferred to the customers. Deferred revenues, which represent a contract liability, include unearned amounts received under license agreements, unearned technical support and amounts paid by customers not yet recognized as revenues. The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and, if they are expected to be recovered, amortized consistently with the pattern of transfer of the good or service to which the asset relates. If the expected amortization period is one year or less, the commission fee is expensed when incurred. |
Changes in accounting policies as a result of adopting ASU No. 2016-01, "Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities" | Changes in accounting policies as a result of adopting ASU No. 2016-01, Beginning on January 1, 2018, the Company has followed the provisions of Accounting Standards Update (“ASU”) No. 2016-01, |
Reclassification | Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. These amounts are associated with trade receivables and accrued revenues. Such reclassifications have no effect on stockholders’ equity or net income as previously reported. |
Use of Estimates | Use of Estimates The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the interim condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Impact of Recently Issued Accounting Standards Not Yet Adopted | In January 2016, the FASB issued ASU 2016-13, available-for-sale 2016-13 available-for-sale In February 2016, the FASB issued ASU 2016-02, 2016-02 No. 2018-11, In August 2017, the FASB issued ASU 2017-12, 2017-12”), 2017-12 In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed 10-K Effective no later than January 1, 2019, the Company will adopt the accounting standards update that allows for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. The update, which permits early adoption, is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods. The Company continues to evaluate the requirements and does not expect the adoption to have a material effect on its condensed consolidated statements of financial position, operations and cash flows and on the disclosures contained in the notes to condensed consolidated financial statements. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of royalties or unexercised contract renewals: Remainder of 2018 2019 2020 2021 License and related revenues $ 2,256 $ 6,730 $ 3,000 $ 1,500 |
Summary of Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition (in thousands): Nine months ended September 30, 2018 Three months ended September 30, 2018 Licensing and Royalties Total Licensing and Royalties Total Primary geographical markets United States $ 4,667 $ 1,420 $ 6,087 $ 1,483 $ 776 $ 2,259 Europe and Middle East 3,286 8,019 11,305 534 5,605 6,139 Asia Pacific 21,954 17,130 39,084 7,769 5,246 13,015 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 Major product/service lines DSP products (DSP cores and platforms) $ 18,077 $ 24,241 $ 42,318 $ 4,652 $ 10,600 $ 15,252 Connectivity products (Bluetooth, Wi-Fi 11,830 2,328 14,158 5,134 1,027 6,161 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 Timing of revenue recognition Products transferred at a point in time $ 22,163 $ 26,569 $ 48,732 $ 6,878 $ 11,627 $ 18,505 Products and services transferred over time 7,744 — 7,744 2,908 — 2,908 Total $ 29,907 $ 26,569 $ 56,476 $ 9,786 $ 11,627 $ 21,413 |
Summary of Trade Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about trade receivables, contract assets and contract liabilities from contracts with customers (in thousands): September 30, Trade receivables $ 7,577 Accrued revenues (short-term contract assets) 5,279 Accrued revenues (royalties) 11,177 Deferred revenues (short-term contract liabilities) 3,614 |
ASU 2014-09 | |
Schedule of Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Taxes | In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s condensed consolidated statements of income and balance sheets was as follows: Nine months ended September 30, 2018 Three months ended September 30, 2018 As reported Balance Effect of change higher/(lower) As reported Balance Effect of change higher/(lower) Revenues: Licensing and related revenue $ 29,907 $ 28,730 $ 1,177 $ 9,786 $ 10,131 $ (345 ) Royalties 26,569 24,874 1,695 11,627 7,337 4,290 Total revenues 56,476 53,604 2,872 21,413 17,468 3,945 Cost of revenues 5,966 5,966 — 2,006 2,006 — Gross profit 50,510 47,638 2,872 19,407 15,462 3,945 Operating expenses: Sales and marketing 9,302 9,186 116 2,727 2,729 (2 ) Other operating expenses 44,625 44,625 — 14,528 14,528 — Total operating expenses 53,927 53,811 116 17,255 17,257 (2 ) Operating income (loss) (3,417 ) (6,173 ) 2,756 2,152 (1,795 ) 3,947 Financial income, net 2,535 2,535 — 831 831 — Income (loss) before taxes on income (882 ) (3,638 ) 2,756 2,983 (964 ) 3,947 Income taxes expenses (benefit) 847 657 190 440 (112 ) 552 Net income (loss) $ (1,729 ) $ (4,295 ) $ 2,566 $ 2,543 $ (852 ) $ 3,395 Basic net income (loss) per share $ (0.08 ) $ (0.19 ) $ 0.12 $ 0.12 $ (0.04 ) $ 0.15 Diluted net income (loss) per share $ (0.08 ) $ (0.19 ) $ 0.12 $ 0.11 $ (0.04 ) $ 0.15 September 30, 2018 (unaudited) As reported Balance Effect of change higher/(lower) Assets: Trade receivables $ 7,577 $ 6,718 $ 859 Accrued revenues $ 16,456 $ 5,269 $ 11,187 Prepaid expenses and other current assets $ 5,904 $ 6,856 $ (952 ) Liabilities: Deferred revenues $ 3,614 $ 3,641 $ (27 ) Stockholders’ Equity: Retained earnings $ 60,570 $ 49,449 $ 11,121 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale September 30, 2018 (Unaudited) Amortized Gross Gross Fair Available-for-sale Corporate bonds $ 8,538 $ — $ (49 ) $ 8,489 8,538 — (49 ) 8,489 Available-for-sale Certificate of deposits 747 — — 747 Government bonds 501 — (11 ) 490 Corporate bonds 70,508 1 (1,452 ) 69,057 71,756 1 (1,463 ) 70,294 Total $ 80,294 $ 1 $ (1,512 ) $ 78,783 December 31, 2017 (Audited) Amortized Gross Gross Fair Available-for-sale Corporate bonds $ 11,803 $ 3 $ (12 ) $ 11,794 11,803 3 (12 ) 11,794 Available-for-sale Certificate of deposits 747 — — 747 Government bonds 501 — (6 ) 495 Corporate bonds 70,291 14 (677 ) 69,628 71,539 14 (683 ) 70,870 Total $ 83,342 $ 17 $ (695 ) $ 82,664 |
Summary of Gross Unrealized Losses and Fair Values on Investments | The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2018 and December 31, 2017, and the length of time that those investments have been in a continuous loss position: Less than 12 months 12 months or greater Fair value Gross Fair value Gross As of September 30, 2018 (unaudited) $ 40,918 $ (615 ) $ 36,817 $ (897 ) As of December 31, 2017 $ 49,921 $ (411 ) $ 22,960 $ (284 ) |
Summary of Gross Realized Gains and Losses from Sale of Available-for-Sale Marketable Securities | The following table presents gross realized gains and losses from sale of available-for-sale Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Gross realized gains from sale of available-for-sale $ 4 $ 14 $ — $ 8 Gross realized losses from sale of available-for-sale $ (34 ) $ (47 ) $ (32 ) $ (1 ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | The table below sets forth the Company’s assets measured at fair value by level within the fair value hierarchy. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Description September 30, 2018 Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 747 $ — $ 747 $ — Government bonds 490 — 490 — Corporate bonds 77,546 — 77,546 — Description December 31, 2017 Level I Level II Level III Assets: Marketable securities: Certificate of deposits $ 747 $ — $ 747 $ — Government bonds 495 — 495 — Corporate bonds 81,422 — 81,422 — |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Nine months ended September 30, 2018 Year ended December 31, 2017 Weighted Gross Accumulated Net Gross Accumulated Net Intangible assets –amortizable: Customer relationships 4.5 $ 272 $ 257 $ 15 $ 272 $ 211 $ 61 Customer backlog 1.5 93 93 — 93 93 — Core technologies 5.1 5,796 4,745 1,051 5,796 4,115 1,681 NB-IoT 7.0 2,200 262 1,938 — — — Total intangible assets $ 8,361 $ 5,357 $ 3,004 $ 6,161 $ 4,419 $ 1,742 (*) During the first quarter of 2018, the Company entered into an agreement to acquire certain NB-IoT NB-IoT |
Summary of Future Estimated Annual Amortization Charges | Future estimated annual amortization charges are as follows: 2018 304 2019 1,155 2020 314 2021 314 2022 314 2023 314 2024 289 $ 3,004 |
GEOGRAPHIC INFORMATION AND MA_2
GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues Based on Customer Location | The following is a summary of revenues within geographic areas: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Revenues based on customer location: United States $ 6,087 $ 6,162 $ 2,259 $ 1,237 Europe and Middle East (1) 11,305 7,451 6,139 1,267 Asia Pacific (2) (3) (4) 39,084 52,293 13,015 21,540 $ 56,476 $ 65,906 $ 21,413 $ 24,044 (1) Germany $ 8,582 * ) $ 5,600 * ) (2) China $ 23,127 $ 31,008 $ 10,192 $ 15,188 (3) S. Korea $ 7,152 $ 13,852 * ) $ 5,076 (4) Japan $ 6,116 * ) * ) * ) *) Less than 10% |
Major Customers Data as Percentage of Total Revenues | The following table sets forth the customers that represented 10% or more of the Company’s total revenues in each of the periods set forth below. Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Customer A 16 % 22 % 16 % 20 % Customer B 12 % 17 % * ) 18 % Customer C 16 % * ) 26 % * ) Customer D * ) * ) * ) 12 % Customer E * ) * ) * ) 21 % *) Less than 10% |
NET INCOME (LOSS) PER SHARE O_2
NET INCOME (LOSS) PER SHARE OF COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) Per Share | Diluted net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.” Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Numerator: Net income (loss) $ (1,729 ) $ 13,865 $ 2,543 $ 5,850 Denominator (in thousands): Basic weighted-average common stock outstanding 22,091 21,687 21,997 21,946 Effect of stock -based awards — 793 431 737 Diluted weighted average common stock outstanding 22,091 22,480 22,428 22,683 Basic net income (loss) per share $ (0.08 ) $ 0.64 $ 0.12 $ 0.27 Diluted net income (loss) per share $ (0.08 $ 0.62 $ 0.11 $ 0.26 |
COMMON STOCK AND STOCK-BASED _2
COMMON STOCK AND STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option and SARs activities and related information for the nine months ended September 30, 2018, are as follows: Number of Weighted Weighted Aggregate Outstanding as of December 31, 2017 729,017 $ 19.77 5.2 $ 19,229 Granted — — Exercised (19,474 ) 16.22 Forfeited or expired (2,128 ) 20.50 Outstanding as of September 30, 2018 (2) 707,415 $ 19.87 4.5 $ 6,447 Exercisable as of September 30, 2018 (3) 610,731 $ 18.96 4.2 $ 6,089 (1) The SAR units are convertible for a maximum number of shares of the Company’s common stock equal to 75% of the SAR units subject to the grant. (2) Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 645,874 shares of the Company’s common stock issuable upon exercise. (3) Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 553,861 shares of the Company’s common stock issuable upon exercise. |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activities and related information for the nine months ended September 30, 2018, are as follows: Number of Weighted Average Unvested as of December 31, 2017 560,616 $ 29.31 Granted 304,496 34.83 Vested (268,052 ) 27.73 Forfeited or expired (30,865 ) 35.46 Unvested as of September 30, 2018 566,195 $ 32.70 |
Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income | The following table shows the total equity-based compensation expense included in the interim condensed consolidated statements of income: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Cost of revenue $ 480 $ 330 $ 155 $ 125 Research and development, net 3,874 2,834 1,246 991 Sales and marketing 1,246 1,040 369 381 General and administrative 2,483 2,142 697 722 Total equity-based compensation expense $ 8,083 $ 6,346 $ 2,467 $ 2,219 |
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan | The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility 35%-42 % 28%-46 % 38 % 28%-43 % Risk-free interest rate 0.7%-2.2 % 0.5%-1.1 % 2.2 % 0.6%-1.1 % Contractual term of up to 24 months 24 months 24 months 24 months |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Outstanding Derivative Instruments | The fair value of the Company’s outstanding derivative instruments is as follows: September 30, December 31, 2018 2017 Derivative assets: Derivatives designated as cash flow hedging instruments: Foreign exchange forward contracts $ 11 $ — Total $ 11 $ — Derivative liabilities: Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 11 $ — Total $ 11 $ — |
Increase (Decrease) in Unrealized Gains (Losses) Recognized in "Accumulated Other Comprehensive Loss" on Derivatives, Before Tax Effect | The increase (decrease) in unrealized gains (losses) recognized in “accumulated other comprehensive loss” on derivatives, before tax effect, is as follows: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ (128 ) $ 88 $ (2 ) $ 1 Foreign exchange forward contracts (131 ) 92 23 (3 ) $ (259 ) $ 180 $ 21 $ (2 ) |
Net (Gains) Losses Reclassified from "Accumulated Other Comprehensive Loss" | The net (gains) losses reclassified from “accumulated other comprehensive loss” into income are as follows: Nine months ended Three months ended 2018 (unaudited) 2017 (unaudited) 2018 (unaudited) 2017 (unaudited) Derivatives designated as cash flow hedging instruments: Foreign exchange option contracts $ 117 $ (88 ) $ 20 $ (1 ) Foreign exchange forward contracts 142 (98 ) 43 3 $ 259 $ (186 ) $ 63 $ 2 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | The following tables summarize the changes in accumulated balances of other comprehensive income (loss), net of taxes: Nine months ended September 30, 2018 Three months ended September 30, 2018 Unrealized gains (losses) on available-for-sale Unrealized Total Unrealized gains (losses) on available-for-sale Unrealized Total Beginning balance $ (586 ) $ — $ (586 ) $ (1,342 ) $ (75 ) $ (1,417 ) Other comprehensive income (loss) before reclassifications (726 ) (232 ) (958 ) 28 18 46 Amounts reclassified from accumulated other comprehensive income (loss) 28 232 260 30 57 87 Net current period other comprehensive income (loss) (698 ) — (698 ) 58 75 133 Ending balance $ (1,284 ) $ — $ (1,284 ) $ (1,284 ) $ — $ (1,284 ) Nine months ended September 30, 2017 Three months ended September 30, 2017 Unrealized gains (losses) on available-for-sale Unrealized Total Unrealized gains (losses) on available-for-sale Unrealized Total Beginning balance $ (502 ) $ 5 $ (497 ) $ (278 ) $ — $ (278 ) Other comprehensive income (loss) before reclassifications 277 161 438 82 (3 ) 79 Amounts reclassified from accumulated other comprehensive income (loss) 24 (166 ) (142 ) (5 ) 3 (2 ) Net current period other comprehensive income (loss) 301 (5 ) 296 77 — 77 Ending balance $ (201 ) $ — $ (201 ) $ (201 ) $ — $ (201 ) |
Details about Reclassification out of Accumulated Other Comprehensive Income Components | The following table provides details about reclassifications out of accumulated other comprehensive income (loss): Details about Accumulated Other Amount Reclassified from Accumulated Other Affected Line Item in the Statements of Nine months ended Three months ended 2018 2017 2018 2017 Unrealized gains (losses) on cash flow hedges $ (5 ) $ 4 $ (1 ) $ — Cost of revenues (225 ) 160 (55 ) (2 ) Research and development (10 ) 10 (3 ) — Sales and marketing (19 ) 12 (4 ) — General and administrative (259 ) 186 (63 ) (2 ) Total, before income taxes (27 ) 20 (6 ) 1 Income tax expense (benefit) (232 ) 166 (57 ) (3 ) Total, net of income taxes Unrealized gains (losses) on available-for-sale (30 ) (33 ) (32 ) 7 Financial income (loss), net (2 ) (9 ) (2 ) 2 Income tax benefit (28 ) (24 ) (30 ) 5 Total, net of income taxes $ (260 ) $ 142 $ (87 ) $ 2 Total, net of income taxes |
Revenue Recognition- Additional
Revenue Recognition- Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | |
Deferred Revenue | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred revenues (Short-term contract liability) | $ 253,000 | $ 3,676,000 | |
ASU 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact to revenues and operating income (loss) | 3,945,000 | 2,872,000 | |
Capitalized contract acquisition costs | $ 239,000 | ||
Capitalized contract cost, amortization | 0 | 120,000 | |
Impairment loss in relation to costs capitalized | 0 | ||
ASU 2014-09 | Accrued Revenues | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle cumulative effect of change on equity or net assets | $ 10,787,000 | $ 10,787,000 | |
ASU 2014-09 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New accounting pronouncement or change in accounting principle cumulative effect of change on equity or net assets | $ 8,555,000 |
Schedule of Estimated Revenue E
Schedule of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Remainder of 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 2,256 |
2,019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 6,730 |
2,020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 3,000 |
2,021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 1,500 |
Summary of Disaggregated Revenu
Summary of Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 21,413 | $ 24,044 | $ 56,476 | $ 65,906 |
Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,786 | 14,021 | 29,907 | 33,893 |
Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,627 | 10,023 | 26,569 | 32,013 |
Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,505 | 48,732 | ||
Transferred at Point in Time | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,878 | 22,163 | ||
Transferred at Point in Time | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,627 | 26,569 | ||
Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,908 | 7,744 | ||
Transferred over Time | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,908 | 7,744 | ||
DSP Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,252 | 42,318 | ||
DSP Products | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,652 | 18,077 | ||
DSP Products | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,600 | 24,241 | ||
Connectivity Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,161 | 14,158 | ||
Connectivity Products | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,134 | 11,830 | ||
Connectivity Products | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,027 | 2,328 | ||
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,259 | 1,237 | 6,087 | 6,162 |
United States | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,483 | 4,667 | ||
United States | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 776 | 1,420 | ||
Europe and Middle East | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,139 | 1,267 | 11,305 | 7,451 |
Europe and Middle East | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 534 | 3,286 | ||
Europe and Middle East | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,605 | 8,019 | ||
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,015 | $ 21,540 | 39,084 | $ 52,293 |
Asia Pacific | Licensing and Related Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,769 | 21,954 | ||
Asia Pacific | Royalties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,246 | $ 17,130 |
Schedule of Trade Receivables,
Schedule of Trade Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Trade Receivables | |
Contract with Customer Asset and Liability [Line Items] | |
Contract with customer asset, balance | $ 7,577 |
Accrued Revenues | |
Contract with Customer Asset and Liability [Line Items] | |
Contract with customer asset, balance | 5,279 |
Accrued Revenues | Royalties | |
Contract with Customer Asset and Liability [Line Items] | |
Contract with customer asset, balance | 11,177 |
Deferred Revenue | |
Contract with Customer Asset and Liability [Line Items] | |
Contract with customer liability, balance | $ 3,614 |
Schedule of Changes in Accumula
Schedule of Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenues: | |||||
Revenues | $ 21,413 | $ 24,044 | $ 56,476 | $ 65,906 | |
Cost of revenues | 2,006 | 1,726 | 5,966 | 5,030 | |
Gross profit | 19,407 | 22,318 | 50,510 | 60,876 | |
Operating expenses: | |||||
Sales and marketing | 2,727 | 3,057 | 9,302 | 9,422 | |
Other operating expenses | 14,528 | 44,625 | |||
Total operating expenses | 17,255 | 16,108 | 53,927 | 48,150 | |
Operating income (loss) | 2,152 | 6,210 | (3,417) | 12,726 | |
Financial income, net | 831 | 821 | 2,535 | 2,147 | |
Income (loss) before taxes on income | 2,983 | 7,031 | (882) | 14,873 | |
Income taxes expenses (benefit) | 440 | 1,181 | 847 | 1,008 | |
Net income (loss) | $ 2,543 | $ 5,850 | $ (1,729) | $ 13,865 | |
Basic net income (loss) per share | $ 0.12 | $ 0.27 | $ (0.08) | $ 0.64 | |
Diluted net income (loss) per share | $ 0.11 | $ 0.26 | $ (0.08) | $ 0.62 | |
Assets: | |||||
Trade receivables | $ 7,577 | $ 7,577 | $ 14,480 | ||
Accrued revenues | 16,456 | 16,456 | 2,014 | ||
Prepaid expenses and other current assets | 5,904 | 5,904 | 3,747 | ||
Liabilities: | |||||
Deferred revenues | 3,614 | 3,614 | 4,399 | ||
Stockholders' equity: | |||||
Retained earnings | 60,570 | 60,570 | $ 53,873 | ||
Licensing and Related Revenue | |||||
Revenues: | |||||
Revenues | 9,786 | $ 14,021 | 29,907 | $ 33,893 | |
Royalties | |||||
Revenues: | |||||
Revenues | 11,627 | $ 10,023 | 26,569 | $ 32,013 | |
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | |||||
Revenues: | |||||
Revenues | 17,468 | 53,604 | |||
Cost of revenues | 2,006 | 5,966 | |||
Gross profit | 15,462 | 47,638 | |||
Operating expenses: | |||||
Sales and marketing | 2,729 | 9,186 | |||
Other operating expenses | 14,528 | 44,625 | |||
Total operating expenses | 17,257 | 53,811 | |||
Operating income (loss) | (1,795) | (6,173) | |||
Financial income, net | 831 | 2,535 | |||
Income (loss) before taxes on income | (964) | (3,638) | |||
Income taxes expenses (benefit) | (112) | 657 | |||
Net income (loss) | $ (852) | $ (4,295) | |||
Basic net income (loss) per share | $ (0.04) | $ (0.19) | |||
Diluted net income (loss) per share | $ (0.04) | $ (0.19) | |||
Assets: | |||||
Trade receivables | $ 6,718 | $ 6,718 | |||
Accrued revenues | 5,269 | 5,269 | |||
Prepaid expenses and other current assets | 6,856 | 6,856 | |||
Liabilities: | |||||
Deferred revenues | 3,641 | 3,641 | |||
Stockholders' equity: | |||||
Retained earnings | 49,449 | 49,449 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | Licensing and Related Revenue | |||||
Revenues: | |||||
Revenues | 10,131 | 28,730 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ASU 2014-09 | Royalties | |||||
Revenues: | |||||
Revenues | 7,337 | 24,874 | |||
Effect of change higher/(lower) | ASU 2014-09 | |||||
Revenues: | |||||
Revenues | 3,945 | 2,872 | |||
Gross profit | 3,945 | 2,872 | |||
Operating expenses: | |||||
Sales and marketing | (2) | 116 | |||
Total operating expenses | (2) | 116 | |||
Operating income (loss) | 3,947 | 2,756 | |||
Income (loss) before taxes on income | 3,947 | 2,756 | |||
Income taxes expenses (benefit) | 552 | 190 | |||
Net income (loss) | $ 3,395 | $ 2,566 | |||
Basic net income (loss) per share | $ 0.15 | $ 0.12 | |||
Diluted net income (loss) per share | $ 0.15 | $ 0.12 | |||
Assets: | |||||
Trade receivables | $ 859 | $ 859 | |||
Accrued revenues | 11,187 | 11,187 | |||
Prepaid expenses and other current assets | (952) | (952) | |||
Liabilities: | |||||
Deferred revenues | (27) | (27) | |||
Stockholders' equity: | |||||
Retained earnings | 11,121 | 11,121 | |||
Effect of change higher/(lower) | ASU 2014-09 | Licensing and Related Revenue | |||||
Revenues: | |||||
Revenues | (345) | 1,177 | |||
Effect of change higher/(lower) | ASU 2014-09 | Royalties | |||||
Revenues: | |||||
Revenues | $ 4,290 | $ 1,695 |
Summary of Available-for-Sale M
Summary of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale - matures within one year, Amortized cost | $ 8,538 | $ 11,803 |
Available-for-sale - matures within one year through five years, Amortized cost | 71,756 | 71,539 |
Amortized cost, Total | 80,294 | 83,342 |
Available-for-sale - matures within one year, Gross unrealized gains | 3 | |
Available-for-sale - matures after one year through five years, Gross unrealized gains | 1 | 14 |
Gross unrealized gains, Total | 1 | 17 |
Available-for-sale - matures within one year, Gross unrealized losses | (49) | (12) |
Available-for-sale - matures after one year through five years, Gross unrealized losses | (1,463) | (683) |
Gross unrealized losses, Total | (1,512) | (695) |
Available-for-sale - matures within one year, Fair value | 8,489 | 11,794 |
Available-for-sale - matures after one year through five years, Fair value | 70,294 | 70,870 |
Fair value, Total | 78,783 | 82,664 |
Certificates of deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale - matures within one year through five years, Amortized cost | 747 | 747 |
Available-for-sale - matures after one year through five years, Fair value | 747 | 747 |
Fair value, Total | 747 | 747 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale - matures within one year, Amortized cost | 8,538 | 11,803 |
Available-for-sale - matures within one year through five years, Amortized cost | 70,508 | 70,291 |
Available-for-sale - matures within one year, Gross unrealized gains | 3 | |
Available-for-sale - matures after one year through five years, Gross unrealized gains | 1 | 14 |
Available-for-sale - matures within one year, Gross unrealized losses | (49) | (12) |
Available-for-sale - matures after one year through five years, Gross unrealized losses | (1,452) | (677) |
Available-for-sale - matures within one year, Fair value | 8,489 | 11,794 |
Available-for-sale - matures after one year through five years, Fair value | 69,057 | 69,628 |
Government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale - matures within one year through five years, Amortized cost | 501 | 501 |
Available-for-sale - matures after one year through five years, Gross unrealized losses | (11) | (6) |
Available-for-sale - matures after one year through five years, Fair value | 490 | 495 |
Fair value, Total | $ 490 | $ 495 |
Summary of Gross Unrealized Los
Summary of Gross Unrealized Losses and Fair Values on Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than 12 months, Fair value | $ 40,918 | $ 49,921 |
Less than 12 months, Gross unrealized loss | (615) | (411) |
12 months or greater, Fair value | 36,817 | 22,960 |
12 months or greater, Gross unrealized loss | $ (897) | $ (284) |
Summary of Gross Realized Gains
Summary of Gross Realized Gains and Losses from Sale of Available-for-Sale Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains from sale of available-for-sale marketable securities | $ 8 | $ 4 | $ 14 | |
Gross realized losses from sale of available-for-sale marketable securities | $ (32) | $ (1) | $ (34) | $ (47) |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Marketable securities | $ 78,783 | $ 82,664 |
Government bonds | ||
Assets: | ||
Marketable securities | 490 | 495 |
Certificates of deposits | ||
Assets: | ||
Marketable securities | 747 | 747 |
Corporate bonds | ||
Assets: | ||
Marketable securities | 77,546 | 81,422 |
Level II | Government bonds | ||
Assets: | ||
Marketable securities | 490 | 495 |
Level II | Certificates of deposits | ||
Assets: | ||
Marketable securities | 747 | 747 |
Level II | Corporate bonds | ||
Assets: | ||
Marketable securities | $ 77,546 | $ 81,422 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Gross Carrying Amount | $ 8,361 | $ 6,161 | |
Total intangible assets, Accumulated Amortization | 5,357 | 4,419 | |
Total intangible assets, Net | $ 3,004 | 1,742 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Weighted Average Amortization Period (Years) | 4 years 6 months | ||
Total intangible assets, Gross Carrying Amount | $ 272 | 272 | |
Total intangible assets, Accumulated Amortization | 257 | 211 | |
Total intangible assets, Net | $ 15 | 61 | |
Customer backlog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Weighted Average Amortization Period (Years) | 1 year 6 months | ||
Total intangible assets, Gross Carrying Amount | $ 93 | 93 | |
Total intangible assets, Accumulated Amortization | $ 93 | 93 | |
Core technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Weighted Average Amortization Period (Years) | 5 years 1 month 6 days | ||
Total intangible assets, Gross Carrying Amount | $ 5,796 | 5,796 | |
Total intangible assets, Accumulated Amortization | 4,745 | 4,115 | |
Total intangible assets, Net | $ 1,051 | $ 1,681 | |
NB-IoT technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, Weighted Average Amortization Period (Years) | [1] | 7 years | |
Total intangible assets, Gross Carrying Amount | [1] | $ 2,200 | |
Total intangible assets, Accumulated Amortization | [1] | 262 | |
Total intangible assets, Net | [1] | $ 1,938 | |
[1] | During the first quarter of 2018, the Company entered into an agreement to acquire certain NB-IoT technologies in the amount of $2,800, of which $600 has not been received. Of the $2,200, $750 has not resulted in cash outflows as of September 30, 2018. The Company recorded the amortization cost of the NB-IoT technologies in "cost of revenues" on the Company's interim condensed consolidated statements of income. |
Summary of Intangible Assets (P
Summary of Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets, gross | $ 8,361 | $ 6,161 | |
Intangible assets purchases incurred but unpaid at period end | 750 | ||
NB-IoT technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, acquired | 2,800 | ||
Finite-lived intangible assets, balance not received | 600 | ||
Finite lived intangible assets, gross | [1] | 2,200 | |
Intangible assets purchases incurred but unpaid at period end | $ 750 | ||
[1] | During the first quarter of 2018, the Company entered into an agreement to acquire certain NB-IoT technologies in the amount of $2,800, of which $600 has not been received. Of the $2,200, $750 has not resulted in cash outflows as of September 30, 2018. The Company recorded the amortization cost of the NB-IoT technologies in "cost of revenues" on the Company's interim condensed consolidated statements of income. |
Summary of Future Estimated Ann
Summary of Future Estimated Annual Amortization Charges (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 304 | |
2,019 | 1,155 | |
2,020 | 314 | |
2,021 | 314 | |
2,022 | 314 | |
2,023 | 314 | |
2,024 | 289 | |
Total intangible assets, Net | $ 3,004 | $ 1,742 |
Revenues Based on Customer Loca
Revenues Based on Customer Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 21,413 | $ 24,044 | $ 56,476 | $ 65,906 | |||
United States | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,259 | 1,237 | 6,087 | 6,162 | |||
Europe and Middle East | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 6,139 | 1,267 | 11,305 | 7,451 | |||
Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 13,015 | 21,540 | 39,084 | 52,293 | |||
China | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 10,192 | 15,188 | 23,127 | 31,008 | |||
S. Korea | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | 5,076 | 7,152 | 13,852 | |||
Germany | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5,600 | [1] | 8,582 | [1] | |||
Japan | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | [1] | $ 6,116 | [1] | |||
[1] | Less than 10% |
Major Customers Data as Percent
Major Customers Data as Percentage of Total Revenues (Detail) - Revenue - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||||
Customer A | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Percentage of total revenues | 16.00% | 20.00% | 16.00% | 22.00% | ||||
Customer B | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Percentage of total revenues | [1] | 18.00% | 12.00% | 17.00% | ||||
Customer C | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Percentage of total revenues | 26.00% | [1] | 16.00% | [1] | ||||
Customer D | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Percentage of total revenues | [1] | 12.00% | [1] | [1] | ||||
Customer E | ||||||||
Revenue, Major Customer [Line Items] | ||||||||
Percentage of total revenues | [1] | 21.00% | [1] | [1] | ||||
[1] | Less than 10% |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) | $ 2,543 | $ 5,850 | $ (1,729) | $ 13,865 |
Denominator (in thousands): | ||||
Basic weighted-average common stock outstanding | 21,997 | 21,946 | 22,091 | 21,687 |
Effect of stock -based awards | 431 | 737 | 793 | |
Diluted weighted average common stock outstanding | 22,428 | 22,683 | 22,091 | 22,480 |
Basic net income (loss) per share | $ 0.12 | $ 0.27 | $ (0.08) | $ 0.64 |
Diluted net income (loss) per share | $ 0.11 | $ 0.26 | $ (0.08) | $ 0.62 |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from computation of earnings per share | 136,113 | 0 | 1,273,610 | 39,856 |
Common Stock and Stock-Based _3
Common Stock and Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
2011 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options and stock appreciation rights granted under stock incentive plans vesting rate, year one | 25.00% | |
Remaining shares vesting period | 36 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares vesting period | 4 years | |
Stock Appreciation Rights (SARs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted percentage | 400.00% | |
Stock Options, SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 224 | |
Unrecognized compensation expense, weighted-average period of recognition | 1 year 2 months 12 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 13,278 | |
Unrecognized compensation expense, weighted-average period of recognition | 1 year 6 months | |
Employees and non-employees award vesting, description | RSUs granted to employees generally vest in three equal annual installments starting on the first anniversary of the grant date. Until the end of 2017, RSUs granted to non-employee directors would generally vest in full on the first anniversary of the grant date. Starting in 2018, RSUs granted to non-employee directors would generally vest in two equal annual installments starting on the first anniversary of the grant date. | |
Non Employee Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted under stock incentive plan vesting rate, each anniversary | 25.00% | |
Non Employee Director | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares vesting period | 2 years | 1 year |
Employee | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares vesting period | 3 years |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | |||
Number of options and SAR units | ||||
Number of shares outstanding, Beginning balance | [1] | 729,017 | ||
Number of shares, Options/SAR units granted | [1] | 0 | ||
Number of shares, Options/SAR units exercised | [1] | (19,474) | ||
Number of shares, Options/SAR units forfeited or expired | [1] | (2,128) | ||
Number of shares outstanding, Ending balance | [1] | 707,415 | [2] | 729,017 |
Number of shares exercisable, Ending balance | [1],[3] | 610,731 | ||
Weighted-average exercise price | ||||
Weighted-average exercise price, Beginning balance | $ 19.77 | |||
Weighted average exercise price, Granted | 0 | |||
Weighted average exercise price, Exercised | 16.22 | |||
Weighted average exercise price, Forfeited or expired | 20.50 | |||
Weighted average exercise price, Ending balance | 19.87 | [2] | $ 19.77 | |
Weighted average exercise price, exercisable | [3] | $ 18.96 | ||
Weighted average remaining contractual term | ||||
Weighted average remaining contractual life, Outstanding at beginning of period | 4 years 6 months | [2] | 5 years 2 months 12 days | |
Weighted average remaining contractual life, Exercisable at end of period | [3] | 4 years 2 months 12 days | ||
Aggregate intrinsic value | ||||
Aggregate intrinsic value, Outstanding, at beginning of period | $ 6,447 | [2] | $ 19,229 | |
Aggregate intrinsic value, Exercisable at ending of period | [3] | $ 6,089 | ||
[1] | The SAR units are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. | |||
[2] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 645,874 shares of the Company's common stock issuable upon exercise. | |||
[3] | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 553,861 shares of the Company's common stock issuable upon exercise. |
Summary of Stock Option Activ_2
Summary of Stock Option Activity (Parenthetical) (Detail) - shares | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | [2] | 707,415 | [1] | 729,017 |
Exercisable amount of stock appreciation right units | [2],[3] | 610,731 | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding amount of stock appreciation right units | 645,874 | |||
Exercisable amount of stock appreciation right units | 553,861 | |||
Stock Appreciation Rights (SARs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of stock appreciation right units | 75.00% | |||
[1] | Due to the ceiling imposed on the SAR grants, the outstanding amount equals a maximum of 645,874 shares of the Company's common stock issuable upon exercise. | |||
[2] | The SAR units are convertible for a maximum number of shares of the Company's common stock equal to 75% of the SAR units subject to the grant. | |||
[3] | Due to the ceiling imposed on the SAR grants, the exercisable amount equals a maximum of 553,861 shares of the Company's common stock issuable upon exercise. |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of RSUs | |
Number of RSUs, Unvested, Beginning balance | shares | 560,616 |
Number of RSUs granted | shares | 304,496 |
Number of RSUs vested | shares | (268,052) |
Number of RSUs forfeited or expired | shares | (30,865) |
Number of RSUs, Unvested, Ending balance | shares | 566,195 |
Weighted average Grant-Date fair value | |
Weighted average Grant-Date fair value, Beginning balance | $ / shares | $ 29.31 |
Weighted average Grant-Date fair value, RSUs granted | $ / shares | 34.83 |
Weighted average Grant-Date fair value, RSUs vested | $ / shares | 27.73 |
Weighted average Grant-Date fair value, RSUs forfeited or expired | $ / shares | 35.46 |
Weighted average Grant-Date fair value, Ending balance | $ / shares | $ 32.70 |
Equity-Based Compensation Expen
Equity-Based Compensation Expense Included in Interim Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 2,467 | $ 2,219 | $ 8,083 | $ 6,346 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 155 | 125 | 480 | 330 |
Research and development, net | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 1,246 | 991 | 3,874 | 2,834 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | 369 | 381 | 1,246 | 1,040 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total equity-based compensation expense | $ 697 | $ 722 | $ 2,483 | $ 2,142 |
Assumptions Used to Estimate Fa
Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan (Detail) - Employee stock purchase plan | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility, Minimum | 38.00% | 28.00% | 35.00% | 28.00% |
Expected volatility, Maximum | 43.00% | 42.00% | 46.00% | |
Risk-free interest rate, Minimum | 2.20% | 0.60% | 0.70% | 0.50% |
Risk-free interest rate, Maximum | 1.10% | 2.20% | 1.10% | |
Contractual term of up to | 24 months | 24 months | 24 months | 24 months |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) - Derivatives designated as cash flow hedging instruments - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in income, net | $ 63,000 | $ (2,000) | $ 259,000 | $ 186,000 | |
Foreign exchange forward and option contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional principal amount of Hedging Contracts | $ 4,250,000 | $ 4,250,000 | $ 0 |
Fair Value of Outstanding Deriv
Fair Value of Outstanding Derivative Instruments (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Derivative [Line Items] | |
Derivative Assets | $ 11 |
Derivative liabilities | 11 |
Derivatives designated as cash flow hedging instruments | Foreign exchange forward contracts | |
Derivative [Line Items] | |
Derivative Assets | 11 |
Derivatives designated as cash flow hedging instruments | Foreign exchange option contracts | |
Derivative [Line Items] | |
Derivative liabilities | $ 11 |
Net (Gains) Losses Reclassified
Net (Gains) Losses Reclassified from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | $ 21 | $ (2) | $ (259) | $ 180 |
Derivatives designated as cash flow hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 21 | (2) | (259) | 180 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | 63 | 2 | 259 | (186) |
Derivatives designated as cash flow hedging instruments | Foreign exchange option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | (2) | 1 | (128) | 88 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | 20 | (1) | 117 | (88) |
Derivatives designated as cash flow hedging instruments | Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss), Effective portion, Net, Total | 23 | (3) | (131) | 92 |
Gain (loss) reclassified from accumulated OCI into income, Effective portion, Net, Total | $ 43 | $ 3 | $ 142 | $ (98) |
Changes in Accumulated Balances
Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 244,670 | |||
Other comprehensive income (loss) before reclassifications | $ 46 | $ 79 | (958) | $ 438 |
Amounts reclassified from accumulated other comprehensive income (loss) | 87 | (2) | 260 | (142) |
Other comprehensive income (loss), net of taxes | 133 | 77 | (698) | 296 |
Ending balance | 244,388 | 244,388 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,417) | (278) | (586) | (497) |
Ending balance | (1,284) | (201) | (1,284) | (201) |
Unrealized gains (losses) on available-for-sale marketable securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,342) | (278) | (586) | (502) |
Other comprehensive income (loss) before reclassifications | 28 | 82 | (726) | 277 |
Amounts reclassified from accumulated other comprehensive income (loss) | 30 | (5) | 28 | 24 |
Other comprehensive income (loss), net of taxes | 58 | 77 | (698) | 301 |
Ending balance | (1,284) | (201) | (1,284) | (201) |
Unrealized gains (losses) on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (75) | 5 | ||
Other comprehensive income (loss) before reclassifications | 18 | (3) | (232) | 161 |
Amounts reclassified from accumulated other comprehensive income (loss) | 57 | $ 3 | $ 232 | (166) |
Other comprehensive income (loss), net of taxes | $ 75 | $ (5) |
Details about Reclassification
Details about Reclassification out of Accumulated Other Comprehensive Income Components (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of revenues | $ (2,006) | $ (1,726) | $ (5,966) | $ (5,030) |
Financial income (loss), net | 831 | 821 | 2,535 | 2,147 |
Research and development | (11,897) | (10,031) | (35,756) | (30,413) |
Sales and marketing | (2,727) | (3,057) | (9,302) | (9,422) |
General and administrative | (2,406) | (2,711) | (8,193) | (7,388) |
Income (loss) before taxes on income | 2,983 | 7,031 | (882) | 14,873 |
Income tax expense (benefit) | 440 | 1,181 | 847 | 1,008 |
Net income | 2,543 | 5,850 | (1,729) | 13,865 |
Reclassification out of accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (87) | 2 | (260) | 142 |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of revenues | (1) | (5) | 4 | |
Research and development | (55) | (2) | (225) | 160 |
Sales and marketing | (3) | (10) | 10 | |
General and administrative | (4) | (19) | 12 | |
Income (loss) before taxes on income | (63) | (2) | (259) | 186 |
Income tax expense (benefit) | (6) | 1 | (27) | 20 |
Net income | (57) | (3) | (232) | 166 |
Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) on available-for-sale marketable securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Financial income (loss), net | (32) | 7 | (30) | (33) |
Income tax expense (benefit) | (2) | 2 | (2) | (9) |
Net income | $ (30) | $ 5 | $ (28) | $ (24) |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | May 31, 2018 | |
Class of Stock Disclosures [Abstract] | |||||
Additional common stock shares, authorized for repurchase | 700,000 | ||||
Purchase of treasury stock, shares | 216,156 | 0 | 527,212 | 0 | |
Purchase of treasury stock, per share value | $ 29.18 | $ 31.76 | |||
Purchase of treasury stock | $ 6,308 | $ 16,742 | |||
Common stock shares, available for repurchase | 483,844 | 483,844 |